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Annual Report
Provides financial results and information about the Scheme.
Trust Deed
The Scheme is governed by a legal document called the Trust Deed. This document
sets out your rights to receive benefits from the Scheme and the obligations of
the Trustee to administer the Scheme properly, invest its assets prudently and
pay members' benefits when applicable.
Prospectus
Legal description of the scheme including summarised details of the provisions
of the Trust Deed, Trustee, Fund Managers, material contracts and financial
information.
Tax Info
Taxation will affect the returns. Under current law, tax is paid by the Trustee on the assessable income of the Schemes, at the rate of 30%. This tax is deducted from the investment returns prior to being credited to your Accounts.
Member Tax Credit (only for the SuperEasy KiwiSaver Scheme)
If you are 18 or over and your principal place of residence, with some exceptions, is New Zealand you are eligible for member tax credits. These will match your member contributions to the SuperEasy KiwiSaver Scheme up to a maximum of $20 per week (approx $1,040 per year). Member tax credits are paid annually directly into your member’s account. If you do not reside in New Zealand for a period of time but remain in the Scheme, you are not eligible to receive your tax credit for that period. If you permanently emigrate and withdraw all your funds before you are eligible to receive a retirement benefit you will not receive any accumulated tax credits.
Tax applying to Portfolio Investment Entities
Both SuperEasy and the SuperEasy KiwiSaver Scheme are portfolio investment entities (“PIE”), which in general terms, will allow tax to be paid on members’ behalf as follows:
What are the new Prescribed Investor Rates? From 1 October 2010 you have the choice of selecting from three options; you can select a Prescribed Investor Rate (PIR) rate of 28%, 17.5% or 10.5%; previously you could select rate of 30%, 21% or 12.5%.
What is your Prescribed Investor Rate (PIR)? Your PIR is the rate of tax that is charged on your investment earnings (your PIE income) in our SuperEasy KiwiSaver Superannuation Scheme and SuperEasy Scheme. Depending on the level of your taxable income you can have your earnings taxed at 28%, 17.5% or 10.5%. The less tax paid on your earnings means there will be more in your account balance so it is important you let us know we have your correct PIR recorded against your name.
How do you determine your PIR rate?
(this applies to taxable and PIE income in either of the previous two income years ending 31 March)
| If your taxable income was: |
And if the combined total of your taxable income and PIE income was: |
PIR from 1/10/2010 |
| $0 to $14,000 |
Under $48,000 |
10.5% (Low) |
| Over $48,000 and Under $70,000 |
17.5% (Mid) |
| $14,001 to $48,000 |
Under $70,000 |
17.5% (Mid) |
| $0 to $48,000 |
Over $70,000 |
28% (Top) |
| Over $48,000 |
Over $48,000 |
28% (Top) |
Calculation and payment of tax
Members are required to provide the administration and investment manager with their IRD numbers and asked to advise the correct Prescribed Investor Rate to use. Members should advise if their Prescribed Investor Rate changes. If no change is advised or the wrong rate is provided, members may have an obligation to file an income tax return and pay further tax.
Upon a member’s partial or full withdrawal of their investment or upon a portfolio switch any tax liability attributed to the member will be met by way of a debit to the member’s and/or employer’s account. If a member partially withdraws and their account balances are of insufficient value to cover the accrued liability this will be deemed a full withdrawal.
The tax paid on income attributed to members by each Scheme will be a final tax (unless the member fails to advise a Prescribed Investor Rate change and has been on a lower PIR to that which should have been applied to their account) so no obligation to file a tax return for members’ investment in the relevant Scheme will generally arise. As at the date of the preparation of this information, income from each Scheme attributed to members will also have no impact on their family assistance eligibility, student loan repayment obligations or child support payment obligations.
Members or employers may be required to provide further information in the form required by the Trustee to ensure no fund withdrawal tax is deducted from a withdrawal.
Tax treatment of investments
Gains or losses made on shares in New Zealand resident companies or certain Australian resident companies listed on an approved list of the ASX and certain Australian unit trusts are not taxable or deductible. The PIE regime is designed to pass through these benefits to members where a Scheme invests in unit trusts or other superannuation schemes that are PIEs.
Foreign equities and offshore funds (other than certain Australian resident companies listed on an approved list of the ASX and Australian unit trusts that offer RWT proxy and meet turnover requirements) will be taxed under the Fair Dividend Rate method. Under this method, each Scheme is taxed on 5% of the average market value of its offshore shares and holdings in offshore funds. Dividends or other returns are not taxed separately, as they are considered to be included under the 5% calculation. Losses are not deductible but foreign tax credits may be available for offset against tax payable.
Foreign equities where the holding is 10% or greater, or equity investments offering guaranteed or fixed rate returns or investments in foreign funds that are 80% or more invested in New Zealand currency issued debt securities or investments determined by Inland Revenue to be debt in economic terms are taxed under the comparative value method, i.e. annual change in market value. Debt securities are taxed under the financial arrangement rules.
Employer Superannuation Contribution Tax
An employer superannuation contribution tax (ESCT) not exceeding 33% will be deducted from employer’s contributions made to the Schemes. The exception to this is in the SuperEasy KiwiSaver Scheme where there is no ESCT deducted from your employer’s contribution if your contribution matches your employer’s contribution, up to a maximum of 2% of your gross salary or wage.
Returns to you are exempt from personal tax under current law.
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